Airline finance / Peter S. Morrell.

Format:

Book

Author/Creator:

Morrell, Peter S., 1946-

Contributor:

Class of 1932 Fund.

Language:

English

Subjects (All):

Airlines--Finance.

Airlines.

Physical Description:

xii, 259 pages : illustrations ; 25 cm

Edition:

Second edition.

Place of Publication:

Aldershot ; Burlington, VT : Ashgate, [2002]

Contents:

1 Industry Financial Performance 1

1.1 World airline financial results 1

1.2 Factors affecting financial results 7

1.3 Asset utilisation 10

1.4 Key financial issues 11

2 Airline Financial Statements 15

2.2 Profit and loss account (income statement) 19

2.3 Balance sheet 28

2.4 Cash flow statement 40

2.5 Value added statement 44

2.6 Cash Value Added (CVA) 46

2.7 The need for greater standardisation 48

Appendix 2.1 Frequent flyer programme award accounting 52

Appendix 2.2 Accounting for finance and operating leases 55

3 Airline Financial Ratios 59

3.1 Performance/earnings ratios 60

3.2 Risk or solvency ratios 64

3.3 Liquidity ratios 67

3.4 Stock market ratios 69

3.5 Inter-airline comparison of financial ratios 74

3.6 Interpretation problems 77

4 Airline Valuation 81

4.1 The valuation of intangible assets 81

4.2 The valuation of tangible assets 89

4.3 The valuation of the airline as a whole 90

4.4 Ratings agencies 96

5 Airline Privatisation 101

5.1 Full privatisation through flotation - British Airways 103

5.2 Full privatisation through trade sale and flotation - Qantas 108

5.3 Gradual privatisation - Lufthansa 111

5.4 Partial privatisation - Kenya Airways 114

5.5 Full privatisation and trade sale - Iberia 116

5.6 Partial privatisation - Air France 117

5.7 The results so far 118

6 Airline Financial Planning and Appraisal 123

6.1 Budget preparation and control 124

6.2 Working capital management 129

6.3 Financial planning 134

6.4 Start-up airline business plan 144

7 Foreign Currency and Fuel Price Exposure 149

7.1 Exchange rate volatility 149

7.2 Airline trading exposure to currency movements 152

7.3 Airline balance sheet exposure to currency movements 158

7.4 Airline foreign exchange risk management 160

7.5 Fuel price exposure 164

8 Sources of Airline Finance 169

8.1 Sources of internal finance 170

8.2 Sources of external finance 171

8.3 Institutions involved in aircraft finance 182

Appendix 8.1 Term loan repayment, book profit and manufacturers' pre-payments 194

9 Aircraft Leasing 197

9.1 Finance lease 199

9.2 Operating lease 202

9.3 Wet lease 207

9.4 Sale and leaseback 207

Appendix 9.1 Lease rental calculations 209

Appendix 9.2 Lease versus buy decision 210

10 Aircraft Securitisation 213

10.1 Equipment Trust Certificates 214

10.2 ALPS 92-1 securitisation 216

10.3 ALPS 94-1 securitisation 217

10.4 Airplanes 96 securitisation 218

10.5 ALPS 96-1 securitisation 219

11 Industry Financial Prospects 223

11.1 World airline traffic and financial forecasts 223

11.2 World airline capital expenditure projections 226

11.3 World airline financial requirements forecasts 227.

Notes:

Previous ed.: 1997.

Includes bibliographical references and index.

Local Notes:

Acquired for the Penn Libraries with assistance from the Class of 1932 Fund.

ISBN:

0754619079

OCLC:

49872137